Nine flexible withdrawal options
The Collective Retirement Account (CRA) delivers all the options below at no additional cost. This gives your clients the methods of withdrawal you need to help when they wish to access their pension savings.
Tax efficiency with withdrawal flexibility
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Option
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Detail
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Open market option
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Option to purchase a lifetime annuity for a guaranteed income for life.
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Flexi Access Drawdown
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From age 55 (changing to age 57 from 6 April 2028), no restriction on the amount of income that can be withdrawn. Withdrawals will trigger the money purchase annual allowance (MPAA).
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Lump sums
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Normally up to 25% can be withdrawn as a tax-free lump sum.
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Capped Drawdown
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Existing pre-April 2015 drawdown contracts only. Removes the need to enter flexi access drawdown. No money purchase annual allowance (MPAA) trigger.
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Small Pots
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Up to £25,500 ad hoc net withdrawal. No money purchase annual allowance (MPAA) trigger. Not suitable for clients who have registered for Enhanced Protection or Fixed Protection 12, 14 or 16 granted on or after 15 March 2023 or clients who have a protected tax-free cash lump sum or protected early retirement age. |
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Beneficiary Drawdown
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Full flexibility available for pension death benefits with dependants, nominees and successors all able to access beneficiary drawdown.
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TRIO: Pension commencement lump sum only
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Tax-efficient regular income options (TRIO). All three are automated regular payment options for efficient
set up and management. For clients who want to receive a
regular payment but also wish to continue to grow their pension
commencement lump sum entitlement. Income tax can be
saved and less could be in your client’s estate for inheritance tax
purposes. Need some available lump sum allowances.
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TRIO: Pension commencement lump sum plus full income
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TRIO: Pension commencement lump sum plus some income
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